Super Group recorded its highest-ever third-quarter revenue number in Q3 2024, with the operator’s turnover exceeding €400 million and increasing by more than 10% year on year.
The parent company of Betway and Spin stated that the quarter’s performance was driven by expansion in Africa, Europe, and North America, while CEO Neal Menashe added that the business achieved “super growth” across its worldwide casino brands.
Super Group is raising its ex-US adjusted EBITDA full-year 2024 target to more than €345 million due to its strong performance this year.
New Q3 revenue high.
In its Q3 earnings, the firm announced a 13% YoY sales rise to €402.9 million (Q3 2023: €356.9 million), its biggest revenue ever in the third quarter. In constant currency (CC), revenue increased by 15% to €410.9 million.
According to Super Group, revenue growth was “driven by growth from the Africa, Europe, and North America (predominantly Canada) markets, partially offset by declines from the Middle East and Asia-Pacific markets”.
At the conclusion of the third quarter, the company’s online casino revenue was at €330.2 million (2023: €277.1 million), sports betting was €67.1 million (2023: €64.6 million), brand licensing was €3.7 million (2023: €8.3 million), and other income was €1.9 million (2023: €6.9 million).
Betway revenue was €239.4 million (2023: €206.4 million), while Spin revenue was €163.5 million (2023: €150.5 million). Monthly active users climbed 17% year on year to 4.7 million (2023: four million).
Africa and the Middle East generated €151.2 million in revenue (2023: €100.1 million), followed by North America at €144.8 million (2023: €134.1 million), Europe at €67.4 million (2023: €54 million), Asia-Pacific at €33.7 million (2023: €62 million), and South/Latin America at €5.8 million (2023: €6.7 million).
“We achieved our strongest third quarter ever, highlighting the phenomenal progress we are making as a business,” Menashe told reporters.
“There is still significant potential as we see rapid expansion throughout our worldwide casino brands, notably in Africa, where we have expanded to become our largest region for the second quarter in a row.
“Given our continued strong performance and robust balance sheet, we are exploring ways to return excess cash to shareholders, and intend to discuss with the board a possible further special dividend before the end of the year.”
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Regional market updates
Excluding US operations, overall sales was €395 million, up 15% year on year, 17% in constant currency, and 24% after accounting for the closure of operations in India. Sports betting income grew by 4% (4% cc) to €67 million, while online casino revenue jumped by 17% (20%) to €322 million.
Other income declined by 45% (43% cc) to €5 million, mostly owing to a fall in brand license payments.
Betway had a 59% total revenue share (2023: 56%), compared to Spin’s 41% (2023: 44%). Online casinos’ overall revenue share was 83% (2023: 81%), while online sports betting’s revenue share was 17% (2023: 19%).
Africa had a 39% revenue share (2023: 29%), followed by the Americas (36%: 39%), Europe (17%: 16%), and the Rest of the World (8%: 16%).
In Africa, Super Group asserted that it had a “strong competitive advantage across the continent” with a considerable local presence and expansion potential, operating in seven markets and holding “podium positions” in five of them.
Regarding the United States, the business stated that it has concluded its withdrawal from the US sportsbook industry, which cost around €36 million, €9 million less than its original estimate of €45 million.
Super Group is now assessing its igaming strategy in the region, as it plans to operate “two brands from the Spin portfolio (including Jackpot City) in both New Jersey and Pennsylvania”.
Actual Q3 adjusted EBITDA in the US was a loss of €11 million, which included a €10.5 million loss for igaming and a €0.9 million loss experienced during the sportsbook wind-down.
Increasing ex-US adjusted EBITDA guidance for 2024
Profit for the third quarter was €8.5 million, down from €10.6 million in Q3 2023, which “included a non-cash charge of €14.2 million related to the change in fair value of option liability.”
Adjusted EBITDA increased by 60% YoY to €83.9 million (2023: €52.5 million). Ex-US adjusted EBITDA rose 52% to a third-quarter record of €95 million (2023: €62.8 million), with a new margin high of 24 percent.
As of September 30, cash and cash equivalents were €296.6 million (2023: €241.9 million).
Super Group also stated that it is raising its ex-US adjusted EBITDA full-year 2024 target to more than €345 million.
Alinda van Wyk, our chief financial officer, commented: “This quarter was our best ex-US third quarter ever, achieving total revenue of €395m and adjusted EBITDA of €95m.”We are concentrating on sustained growth in our main markets while also aiming to optimize operational and marketing cost reductions throughout the company, resulting in a margin of 24% for the second quarter in a row, well ahead of our long-term objective of 20%.
“Following the strong performance of the business over the first three quarters and an early look at a strong October, we are increasing our ex-US Adjusted EBITDA full-year 2024 guidance to be greater than €345m.”
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